A Company Purchased Modular Office Furniture for Its Two New

A company purchased modular office furniture for its two new office branches, A and B. MACRS with a 7- year recovery period was used to write off the investment. The following information was prepared for the economic evaluation. $\begin{array}{l|l|l}\text { rnative } & \text { A } & \mathrm{B} \\\hline \text { t costs } & \$ 35,000 & \$ 44,500 \\\hline \text { tual maintenance costs } & \$ 1500 \text { in year } 1 \text { and increasing by } & \$ 12000\\&\$ 150 \text { each year thereafter }\\\hline \text { rage value } & \$ 3100 & - \\\hline \text { years } & 8 & 8 \\\hline\end{array}$ However, the company expects to close branch A and sell the furniture at the end of year 5 for $20,000. Determine which is the better alternative based on an after- tax annual worth analysis with an effective tax of 40% and an after- tax MARR of 8% per year.